REBusinessOnline

Discipline Tempers Debt Market Flush With Capital

When the current economic expansion passed the 10-year mark on July 1, it became the longest growth cycle in U.S. history. Still, mixed messages continue to plague the economic outlook. Arguments for optimism include the rising trajectory of GDP growth, which hit a three-year high of 2.9 percent for all of 2018 and was followed by a 3.1 percent reading in the first quarter of 2019. Unemployment is at a 50-year low, and interest rates remain near historical lows. On June 19, the 10-year …

Coworking is Snatching Up Office Space, But Is More Disruption on the Horizon?

CARLSBAD, CALIF. — The office investment market is back on track and buoyed by significant sources of capital for deal making, following some political and economic uncertainty over the past year, according to the June 2019 Office Investor Sentiment Report by Real Capital Markets (RCM). Among the key takeaways is that a majority of investors (87 percent) who participated in the survey view coworking as a moderate to high risk to investment values, with 37 percent of that group noting that …

Reis: National Retail Vacancy Experiences First Drop Since 2016 Among Neighborhood Shopping Centers

NEW YORK CITY — The neighborhood and community shopping center retail vacancy rate fell 10 basis points to 10.1 percent in the second quarter, according to New York-based commercial real estate data firm Reis. This is the first time in which vacancy has declined since the first quarter of 2016. For context, in the second quarter of 2018, the rate had risen 20 basis points to 10.2 percent and remained flat at that rate through the first quarter of this year. The tightening of available …

U.S. Economy Adds 224,000 Jobs in June, Unemployment Ticks Up to 3.7 Percent

WASHINGTON, D.C. — The U.S. economy added 224,000 new jobs to nonfarm payrolls in June, exceeding economists’ expectations and building on last month’s total of 72,000, according to the monthly report from the Bureau of Labor Statistics (BLS). The job growth figure for May was revised down by 3,000 positions from 75,000 jobs. The unemployment rate ticked up 10 basis points to 3.7 percent, but the overall rate of job growth suggests the economy still has some gas in the tank as the …

Cold Storage Yet to Tap Full Potential

Across the country, natural population growth is triggering demand for more space for the manufacturing, processing, storing and distributing of food. Cold storage facilities cater to this demand by offering numerous types of warehousing solutions, from chilled spaces for dairy products and dry fruits and vegetables to freezer facilities for meat and seafood. Most major grocers are slowing their paces of new store openings while also developing their online delivery platforms, the latter of …

Executive Directors Take on Heightened Importance in Evolving Seniors Housing Industry, Says InterFace Power Panel

CHICAGO — Operators in the senior living space universally agree that the executive director holds the single most important position at their communities and that the job is a daily grind. These frontline administrators are not only tasked with providing the best care possible for residents, but they must also demonstrate strong financial acumen. They are frequently thrust into the role of crisis manager, all the while they are expected to be strategic thinkers. Rather than simply give …

Q&A: Best Practices for Filling Vacant Big Box Retail Space

Shopping Center Business, sister publication to REBusinessOnline, recently sat down with Cynthia Nelson, senior managing director in the real estate solutions practice at FTI Consulting, to discuss the current retail landscape and tips and tricks for tackling big box vacancies. Tell me a bit about your outlook on the retail landscape at current. We’re going through a huge transformation in terms of how consumers buy retail goods and services and it is taking a toll on our shopping …

Dodge Data Economist: Multifamily Development Wave Has Lenders Wary

ATLANTA — Lenders are understandably exercising caution when it comes to financing multifamily housing development projects, says Robert Murray, chief economist for Dodge Data & Analytics, which tracks construction starts across commercial real estate. “Notwithstanding the pickup in activity we had in 2018 and notwithstanding the fact that millennials are still looking at apartments as opposed to single-family homes, we view multifamily housing as one of the more vulnerable parts of …

Medical Office Sales Active in Southeast Despite Slowdown Nationally, Say InterFace Panelists

CHARLOTTE, N.C. — Medical office buildings (MOBs) were trading at steady increases year over year from 2011 to 2017, says P.J. Camp, principal and co-founder of Atlanta-based healthcare real estate investment firm Hammond Hanlon Camp. In 2018, however, MOB transactions started to dip, a trend that bled into the first part of this year. There were $14 billion worth of MOB transactions in 2017 but $12 billion worth in 2018. The first quarter of 2019 saw $1.7 billion worth of transactions in …

Hospitality Lending: Whose Market?

As the economy continues its upward trajectory, hotels are enjoying the benefits of strong demand from both personal and business travel. Despite these solid operating fundamentals, many lenders are apprehensive about the record length of the current economic expansion and the impact that a future downturn may have on room rates and occupancy levels. In response to these growing fears, many capital sources have either tightened their lending criteria or decided to cease hospitality lending all …

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